Immigrant economic integration is key to Canada’s social and financial stability. One of the most significant indicators of this integration is the median entry wage—the median wage earned by new immigrants one year after their arrival. According to data from the 2023 Longitudinal Immigration Database (IMDB), the median entry wage for new immigrants in Canada grew by 6.7 percent from 2021 to 2022. This growth occurred amid a 1.6 percent dip in Canadians’ overall real median wage.
Wages vary across admission categories, pre-admission work experience, gender, and country of birth.
On This Page You Will Find
- A detailed overview of how median entry wages for new immigrants in Canada increased by 6.7% in 2022.
- Insights into how pre-admission work experience affects wages and economic outcomes for immigrants.
- Variations in wages by admission category, including CEC, PNP, family sponsorship, and refugees.
- Data on gender wage gaps among immigrants and how these gaps are narrowing.
- The role of immigrant origin countries in shaping wage outcomes and economic performance over time.
Median Entry Wage in 2022
The trajectory of immigrant wages over the past few years has been shaped by the COVID-19 pandemic and other global economic factors. In 2019, the median entry wage for immigrants admitted a year earlier was $35,500. Due to the economic slowdown caused by the pandemic, it dropped to $33,100 in 2020. However, it rebounded sharply to $40,200 in 2021 and increased to $42,900 in 2022.
The 6.7 percent increase in 2022 aligns with the 10-year trend (2013-2022), where annual median wage growth averaged 6.6 percent. In comparison, Canadian workers experienced a 1.6 percent decline in their median wage, which fell to $45,380 after adjusting for inflation. This divergence reflects the resilience of the immigrant workforce amid changing economic conditions.
Economic Principal Applicants Drive Wage Growth
Economic principal applicants, selected based on their ability to contribute to Canada’s economy, have historically earned the highest wages among immigrants. Their median entry wage in 2022 was $52,400, a slight decrease of 4.2 percent from 2021 ($54,700). Despite the drop, this amount remained significantly higher than pre-pandemic levels ($48,400 in 2019).
A key factor behind this trend is pre-admission work experience. Immigrants with Canadian work experience before admission tend to have higher wages as they are more likely to enter the workforce immediately upon arrival. Canadian Experience Class (CEC) principal applicants, who must have prior work experience in Canada, typically have strong economic outcomes. However, their median wage dropped by 17.4 percent from $68,200 in 2021 to $56,400 in 2022.
This wage reduction may be linked to the characteristics of those admitted under the CEC program. In 2021, Immigration, Refugees and Citizenship Canada (IRCC) increased the intake of CEC applicants from 25,000 in 2020 to 130,000 in 2021. The influx of a more extensive and diverse pool of candidates may have contributed to wage shifts.
Factoring in Pre-Admission Experience
The IMDB data reveals that pre-admission work experience plays a pivotal role in wage outcomes. In 2022, immigrants with both work and study permits before arrival had a median entry wage of $48,300, a decrease of 6.9 percent from 2021. Immigrants with only work permits had the highest entry wages, at $52,000, while those with study permits alone earned significantly less ($17,400).
Interestingly, immigrants without pre-admission experience faced a 9.4 percent decline in their entry wages, earning a median of $27,900 in 2022. In contrast, asylum claimants experienced a 20.1 percent wage increase, reaching $31,000. This demonstrates that pre-arrival work experience can offer a head start for newcomers in Canada’s job market.
Variations by Admission Category
The wage outcomes of immigrants differ significantly by admission category. The CEC and Skilled Worker categories generally have the highest entry wages. However, other admission groups have seen notable changes:
- Provincial Nominee Program (PNP): Median entry wage was $47,700 in 2022, ranking third among admission categories.
- Caregivers: Median entry wage increased to $35,400 in 2022.
- Business Program Applicants: This group had the lowest median wage at $24,500.
- Spouses and Dependents of Economic Immigrants: Their median entry wage rose from $34,600 in 2021 to $35,700 in 2022.
- Refugees: Refugees saw their wages increase by 14.4 percent, reaching $25,400.
- Family-Sponsored Immigrants: Their median entry wage rose 10.1 percent to $30,400.
These figures show that while economic principal applicants typically earn more, other admission categories, especially family-sponsored immigrants and refugees, are also experiencing wage growth.
Country of Birth
The IMDB data also tracks the wage evolution of immigrants admitted in 2012. Over a decade, the median wage for this group increased by 74.1 percent, from $25,900 in 2013 to $45,100 in 2022.
Significant disparities exist based on immigrants’ country of birth. For instance, in 2013, the median wage of Filipino immigrants was $31,800, the highest among key source countries. However, by 2022, Iranian immigrants had the highest median wage ($49,400) among this group, surpassing Filipino immigrants ($46,800), Indians ($44,900), Pakistanis ($32,100), and Chinese ($35,900). This shift reflects changes in these groups’ educational qualifications, job sector participation, and pathways.
A Narrowing Gender Wage Gap
Gender-based wage disparities remain a concern in Canada’s labour market. However, the gap is narrowing for immigrants. While the entry wage for men rose by 3.8 percent from $47,000 in 2021 to $48,800 in 2022, the entry wage for women jumped by 13.2 percent, from $32,600 to $36,900.
This marked improvement has reduced the gender wage gap from 36.7 percent in 2013 to 24.4 percent in 2022. The increased educational attainment of female immigrants and their rising participation in higher-paying sectors have been a driving force behind this shift.
Among immigrants admitted in 2012, the wage gap between men and women narrowed. While men’s wages increased by 69.6 percent from 2013 to 2022, women’s wages grew by 93.4 percent, with their median wage reaching $38,300 in 2022.
The 2023 Longitudinal Immigration Database sheds light on the nuanced economic performance of Canada’s immigrant population. From 2021 to 2022, the median entry wage for newcomers increased by 6.7 percent, reflecting sustained upward trends seen over the past decade. While economic principal applicants, particularly those with pre-arrival Canadian work experience, continue to earn the highest wages, other categories, including refugees and family-sponsored immigrants, have shown promising growth.
Pre-admission experience is a key determinant of wage outcomes, with those possessing Canadian work experience earning higher wages than those arriving without it. Differences by admission category, gender, and country of birth highlight the importance of targeted policy interventions.
The narrowing of the gender wage gap is a particularly encouraging trend, reflecting broader changes in the economic integration of immigrant women. However, challenges remain, as seen in the decline of wages for CEC principal applicants and immigrants without pre-admission experience.
As Canada continues to welcome new immigrants yearly, the IMDB will remain vital for monitoring wage outcomes and impacting policy decisions. With the next IMDB report set for release on December 19, 2024, further insights into the labour market mobility of immigrants will shed light on where things stand.
FAQ
What is the median entry wage for new immigrants, and why is it important?
The median entry wage is the midpoint wage earned by immigrants one year after their arrival in Canada. It reflects economic integration and the ability of newcomers to contribute to the economy. In 2022, this wage rose to $42,900, showcasing resilience despite broader economic challenges. Tracking this metric helps policymakers evaluate the effectiveness of immigration programs and address disparities in labor market outcomes.
How does pre-admission work experience affect immigrant wages?
Pre-admission work experience significantly boosts immigrant wages. In 2022, immigrants with Canadian work permits before arrival earned a median entry wage of $52,000, much higher than those without such experience, who earned $27,900. This shows that familiarity with the Canadian job market and gaining local experience before immigrating can provide a significant economic advantage.
Which admission categories have the highest and lowest wages?
Economic principal applicants, such as those under the Skilled Worker and CEC categories, consistently earn the highest wages. In 2022, CEC applicants earned a median wage of $56,400, though this marked a decline from 2021. Business program applicants earned the lowest wages, with a median of $24,500, reflecting challenges in immediate economic integration for entrepreneurial immigrants.
How is the gender wage gap changing for immigrants?
The gender wage gap for immigrants is narrowing. In 2022, women’s entry wages rose by 13.2%, compared to 3.8% for men, reducing the wage gap to 24.4%. This trend reflects higher educational attainment and increased participation by immigrant women in higher-paying sectors. Over a decade, women’s wages grew by 93.4%, significantly outpacing men’s growth of 69.6%.
Which countries of origin have the highest immigrant wages in Canada?
In 2022, immigrants from Iran had the highest median wage ($49,400), followed by Filipino immigrants ($46,800) and Indian immigrants ($44,900). Wage outcomes often reflect differences in education, work experience, and industry participation among immigrant groups. These figures highlight the diverse economic contributions of immigrants based on their origin.
